Nigeria Files $81.5 Billion Lawsuit Against Binance

The Nigerian authorities have initiated a lawsuit against the cryptocurrency exchange Binance, seeking compensation totaling $81.5 billion. This was reported by Reuters, citing court documents.

The claim includes $79.5 billion for alleged economic damages and $2 billion for unpaid taxes over two years.

According to the Federal Inland Revenue Service of Nigeria (FIRS), Binance has a “significant economic presence” in the country and is therefore liable for corporate income tax.

The agency seeks a court order to compel the exchange to pay income tax for 2022 and 2023, along with a 10% annual penalty. FIRS is requesting an interest rate of 26.75% for these payments based on the central bank’s relevant rate.

Earlier, Binance was accused in Nigeria of tax evasion on four counts, including non-payment of VAT, corporate income tax, failure to file tax returns, and aiding clients in tax evasion. In a separate case, the company is charged with money laundering and currency speculation amounting to up to $34.4 million.

In February 2024, authorities detained two top executives of the exchange. Nadim Anjarwalla managed to escape to Kenya, while Tigran Gambaryan spent eight months in the Kuje correctional facility in Abuja. In October, the Nigerian government dropped all charges against him. Diplomatic intervention and the defendant’s level of involvement in the alleged crimes were cited as the main reasons for ending the prosecution.

Binance Holdings Limited is now the sole defendant in both cases. The company denies all allegations.